2025-020 - Density Bonus Agreement No. 2025-02 for Townhome Developement

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4.15 Developer shall allow the City to conduct annual inspections of the Affordable Units on the Property after the date of construction completion,with reasonable notice,which shall be at least twenty four(24)hours in advance, unless a shorter time is required in an emergency,to Developer for the Term of this Agreement. Developer shall commence to cure or cause the commencement to cure any defects or deficiencies found by the City while conducting such inspections within ten (10) business days of written notice thereof, or such longer period as is reasonable within the reasonable discretion of the City. 5. TERM OF THIS AGREEMENT 5.1 Term. This Agreement shall continue until all Affordable Units have been sold to Homebuyers pursuant to this Agreement (the"Term"). Upon the issuance of a Certificate of Occupancy for all of the Affordable Units in a building, this Agreement shall terminate as to the Unrestricted Units and the common area associated with that building. If there are no Affordable Units in a particular building, this Agreement shall terminate as to the Unrestricted Units in that building and the common area associated with that building upon the issuance of the Certificate of Occupancy for Affordable Units in the prior building. Upon the initial sale of each Affordable Unit and execution and recordation (as applicable) of the Homebuyer Documents pursuant to Section 3.5, or sale of an Affordable Unit as a Released Unit pursuant to Section 3.6, this Agreement shall terminate and be of no further force and effect with respect to such Affordable Unit. Upon the initial sale of all Affordable Units to Eligible Households pursuant to this Agreement, this Agreement shall terminate and be of no further force and effect. While not necessary to effect the termination of this Agreement, the Parties shall cooperate to execute and record a release or termination as to the Unrestricted Units, common area of the Project, or the Affordable Units as per the terms of this Section. 5.2 Continuing Obligation to Pay the City Equity Share. Notwithstanding the expiration of the Term,the City shall have the right to receive payment for the City Equity Share, and enforce the Affordable Housing Resale Restrictions, the City Promissory Note, and the City Deed of Trust until satisfactory payment of the City Equity Share pursuant to the terms of those agreements. 6. DEFAULT AND TERMINATION; INDEMNIFICATION 6.1 Default. Failure or delay by any Party to perform any term or provision of this Agreement, which is not cured within thirty (30) days after receipt of notice from the other Party specifying the default (or such other period specifically provided herein), constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty(30) days to cure,the defaulting Party shall avoid default hereunder by commencing to cure within such thirty(30)day period, and thereafter diligently pursuing such cure to completion within an additional sixty (60) days following the conclusion of such thirty (30) day period (for a total of ninety(90) days). Except as required to protect against further damages,the injured Party may not institute proceedings against the Party in default until the time for cure has expired. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 6.2 Remedies. Page 18 55394,00 10 1 143 72495 1.1 i